Bitcoin may be more like a bond than a stock in the long run, says Bloomberg

According to researchers at Bloomberg, Bitcoin (BTC) could start behaving more like a haven asset like US Treasuries or gold, rather than company stock.

Bloomberg’s estimate stems from a report signed by a strategist goods (Commodity) Mike McGlone and Market Structure Analyst Jimmy Coates. The document cited is the August version of the company’s cryptocurrency market analysis.

For the professionals, if the Fed once again takes drastic measures to raise interest rates to combat inflation, Bitcoin will most likely suffer along with the stock markets.

However, they see the specific scenario of lowering inflation that will end up benefiting the cryptocurrency and Which leads it to act like a shelter asset. At the moment, as we reviewed on CriptoNoticias, it does not appear that the curb on inflation has arrived despite the fact that there have been 4 rate hikes this year. Some even believe that it will take years to get out of this inflationary spiral.

Analysts added that the Fed’s current approach to addressing the situation periodically could help bitcoin take this trend toward Treasuries and away from the performance of stocks.

“Bitcoin has been one of the best performing assets since its inception a decade or so ago, and we believe more of the same will come, particularly as it may move to global collateral, with returns more in line with Treasuries or chapels.”

Mike McGlone and Jimmy Cutts, Bloomberg Intelligence.

Bitcoin as a store of value

The narrative of bitcoin as a store of value (and even comparisons to gold) is not new. Renowned institutions such as Goldman Sachs and countless market analysts have referred to cryptocurrencies as a valuable haven and Even as a reaction against inflation.

In fact, there are those who directly refer to Bitcoin as digital gold and consider it an asset purported to replace the precious metal in the financial world. Billionaires even favor this “digital gold” over physical gold as a reserve.

 

 

 

 

 

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